Semi finish price from bullish to bearish trend. Last week market continue to open strong with price hike by 3-4% but end of the week mismatch in demand and supply couldn't support price. Presently all participant eye on trader stock as they are herd to be selling below manufacturer price by Rs 400-500/MT making market in bearish trend.
Prices of MS Ingot in Mandi Gonbindgarh, that is considered as benchmark price, increase up by Rs 450/MT W-o-W, whereas prices in Eastern market, Raipur's up by Rs 500/MT and Durgapur down by Rs 200/MT W-o-W giving cautious market sentiment. “Low finish demand and selling pressure by trader, pulling down manufacturer's price esp in Re-bar and MS Ingot/Billet that is being sold in discount of Rs 300-500/MT by trader' said well know trader based in Raipur.
Billet export inquiry increases in East/Western India (Durgapur, and Mumbai). Low domestic prices, high dollar realization and high offers in international market increases the export inquiry in Durgapur from Nepal and Bangladesh. And from middle east in Mumbai. “I have strong buying of Billet from Jebel Ali (UAE) current offer i am quoting CIF is $510 for Qty 2,000 MT. Similarly TMT demand from Maputo port (South Africa and Dubai) Qty 500MT ” said well know exporter based in Mumbai that cater Middle East Country.
Sponge prices under pressure. After increment of 5% hike in prices last week this week sponge may remain under pressure due to high Iron ore price, increase production of sponge iron in Raipur, Durgapur and Rourkela and low demand.
Re-bar trader fear more loss due to low offer by traders. Last week price increase by 4% W-o-W but today opening price witness correction of Rs 400-700/MT as trader offer continue to remain low across India.
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